China unhappy at levels of investment in Australia
Updated
China is not satisfied with the level of its foreign investment in Australian companies. China's Ambassador to Australia says there are many opportunites beyond the mining sector where cooperatiion should be expanded.
His Excellency Zhang Junsai believes the role of state-owned companies is misunderstood but he's comfortable with the Australian government's foreign investment review process. State-owned Chinalco's plans to increase its shareholding in Rio Tinto is currently waiting the necessary Australian government approval.
But investment is not the only issue irritating the Chinese. Mr Zhang is at pains to press the point that China poses no threat, economically or otherwise, to any other country.
Presenter: Karon Snowdon
Speakers: Chinese Ambassador to Australia, Zhang Junsai; Geoff Baker, Managing Director of China Time, Inc.
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SNOWDON: Some neighbours might view China with suspicion. Australia's recent defence White Paper might be interpreted as a strategy to contain a militarily strong China in future, while not referring to either scenario directly, China's Ambassador to Australia, Zhang Junsai, wanted to make China's peaceful intentions clear. China's present policy he said is to put differences with neighbours aside and concentrate on development for mutual benefit.
JUNSAI: Now it is the best time for China relations with its neighbouring countries. China's development does not pose a threat to any country. China has long remained committed to the road of peaceful development. It seeks a peaceful international environment, for self-development, defends and promotes world peace and prosperity through its own development as I say, so long as we look after ourselves well, that is the minimum condition, that is the greatest contribution to the world.
SNOWDON: Zhang Junsai was addressing a business conference in Sydney, so his major focus was on the economy, which is growing at 6 per cent. He says confidence has returned in China with jobs, tourism and construction on the rise. This is good for Australia he says, pointing out the link Treasurer, Wayne Swan, made in his budget two weeks ago, about Australia's future growth prospects being tied to China's, even more so since the global financial crisis rocked the world. But Ambassador Zhang is disappointed at the low level of Chinese investment in Australia. It's just 1 per cent of the total. He thinks there are misconceptions about Chinese companies.
JUNSAI: I want to stress that state-owned enterprises not state-run enterprises. After 30 years opening up, we are doing it according to the international practice.
SNOWDON: And later in an interview.
JUNSAI: As we are deepening our economic cooperation as I say that we should expand in this area, we can fight against any crisis. This is the beauty of the complementality.
SNOWDON: So does China view the slow Chinalco review as a potential setback to that economic relationship?
JUNSAI: Well, this is a commercial issue and I don't regard it as slow, because of course with such a big investment, the government of Australia needs to take time to look at it, but we have to look at this objectively.
SNOWDON: More unhappy still is businessman, Geoff Baker, the Managing Director of investment company, China Time Inc. He's been based in Beijing for 23 years and thinks the Australian Government is sending the wrong signals with its foreign investment delays, including Chinalco and Rio Tinto.
BAKER: I think it's been very poor and confused and it's sending confusing messages to the Chinese. I am dealing with investors out of China wanting to come in and invest in Australia and they are getting nervous. If the government creates and constantly creates indecision in investment from overseas, it will deter that investment. But it is certainly becoming political and the Chinese are looking at it in a political way now.
SNOWDON: Beijing and its ambassador in Canberra though are looking to increase ties with Australia.
Zhang Junsai says there are huge opportunities for cooperation, especially in the areas of education, energy saving and clean coal technology.
